ACG 2021 Lecture Notes - Lecture 2: The Ledger, Trial Balance, General Ledger
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The bank reconciliation prepared by Gemma Tours on March 31,2017, appeared as follows:
Gemma Tours | ||||
Bank Reconciliation | ||||
March 31, 2017 | ||||
Bank statementbalance | $15,500 | Book balance | $34,257 | |
Add: | ||||
Deposit of March 31 in transit | 22,044 | |||
$37,544 | ||||
Deduct: | ||||
Outstanding cheques: | ||||
#79 | $1,306 | |||
#84 | 1,981 | 3,287 | ||
Adjusted bankbalance | $34,257 | Adjusted bookbalance | $34,257 | |
The Cash account in the General Ledger appeared as follows on April30:
Cash | Acct. No.101 | ||||
Date | Explanation | PR | Debit | Credit | Balance |
2017 | |||||
March 31 | Balance | 34,257.00 | |||
April 30 | CR11 | 35,645.00 | 69,902.00 | ||
30 | CD14 | 45,533.00 | 24,369.00 | ||
A list of deposits made and cheques written during April, takenfrom the Cash Receipts Journal and Cash Disbursements Journal, isshown below:
Deposits Made | |
April 7 | $14,865.00 |
13 | 892.00 |
18 | 14,272.00 |
23 | 994.00 |
27 | 1,981.00 |
30 | 2,641.00 |
Total April CashReceipts | $35,645.00 |
Cheques Written | |
No.91 | $ 1,256 |
92 | 5,475 |
93 | 2,590 |
94 | 3,613 |
95 | 3,033 |
96 | 1,895 |
97 | 8,862 |
98 | 3,033 |
99 | 8,982 |
100 | 6,794 |
Total April CashDisbursements | $45,533 |
The following bank statement is available for April: (Note: Thebank deposits interest into the bank account at the end of everymonth.)
Bank Statement | |||||
To:Gemma Tours | April 30, 2017 Bank of Montreal | ||||
Cheques/Charges | Deposits/Credits | Balance | |||
15,500 | |||||
#93 | 04/02 | 2,509 | 04/03 | 22,044 | 35,035 |
#92 | 04/07 | 5,475 | 04/07 | 14,865 | 44,425 |
#84 | 04/13 | 1,981 | 04/13 | 892 | 43,336 |
NSF | 04/18 | 6,876 | 04/18 | 14,272 | 50,732 |
#95 | 04/23 | 3,033 | 04/23 | 994 | 48,693 |
#99 | 04/27 | 8,982 | 04/27 | 1,981 | 41,692 |
#96 | 04/30 | 1,895 | 04/30 | 2,641 | 42,438 |
#97 | 04/30 | 8,862 | INT | 46 | 33,622 |
#94 | 04/30 | 3,613 | 30,009 | ||
PMT | 04/30 | 9,861 | 20,148 | ||
INT | 04/30 | 35 | 20,113 | ||
SC | 04/30 | 55 | 20,058 |
NSF = NotSufficient Funds | SC =Service Charge | PMT =Principal Payment | INT =Interest | ||
In reviewing cheques returned by the bank, the bookkeeperdiscovered that cheque #93, for delivery expense, was recorded inthe Cash Disbursements Journal incorrectly as $2,590. The NSFcheque was that of customer Laura Clark, deposited in April.
Required:
a. Prepare a bank reconciliation at April 30.
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b. Prepare the necessary journal entries tobring the General Ledger Cash account into agreement with theadjusted balance on the bank reconciliation.
Journal entry worksheet
Record interest earned.
Note: Enter debits before credits.
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Journal entry worksheet
Record to account for error in Cheque #93.
Note: Enter debits before credits.
Journal entry worksheet Record to reinstate customer account. Note: Enter debits before credits.
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